RMB partners Transcend in green affordable rental market

MEDIA RELEASE

4 MARCH 2022

RMB and Transcend partner in green affordable rental market in South Africa

RMB has facilitated an inaugural green loan for Transcend, a residential property fund specialising in fostering growth in the underserved affordable-rental residential market in South Africa. Transcend focuses on a defensive asset class, with rentals in the portfolio ranging from R4,500 to R8,000, providing affordable accommodation close to work for a growing middle class in South Africa’s urban centres.  

The proceeds of the R247.5m green loan will be used to finance eligible green assets. RMB acted as lender and sustainability agent to Transcend.

“Transcend’s recognition of the importance of sustainability is evidenced in their commitment to develop a more sustainable residential portfolio. By greening their portfolio Transcend will not only reduce their environmental impact, but also create operational cost savings which will directly benefit their tenants,” says Danielle Frank, RMB Sustainable Finance and ESG Advisory Transactor.

Nic Watchorn, CFO for Transcend says: “This transaction is a tangible milestone in our journey to establishing Transcend as a sustainability focused real estate player. We look forward to working with RMB as we continue to advance on our sustainability journey.”

In this transaction, Transcend received an upfront pricing benefit given the IFC “Excellence in Design for Greater Efficiencies” (EDGE) certification on one of its buildings. This preliminary IFC EDGE certification received, is predicted to achieve energy savings of 21%, water savings of 24% and 94% less embodied energy in materials used.

Tsoanelo Ntene RMB Real Estate Transactor say: “This loan is important to RMB, as it contributes to the sustainability of an underserviced portion of the real estate market. Sustainability should not be limited to corporate or luxury rentals but extended to more affordable options. This is because – at its heart – sustainability contributes to the longevity and quality of rentals.”

This transaction further supports the growth in green loans within the real estate sector.  RMB has  established a track record in this sector, through a number of pioneering sustainable finance structures.  

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Contact:

Kate Kelly l RMB l kate.kelly@rmb.co.za